The explosion at the ExxonMobil refinery is only partly to blame for a surge in gasoline prices that even stunned one gas station operator Thursday.

Frank Scotto, Torrance’s former mayor, said he was forced to pass along a 24-cent overnight increase in pump prices at his Chevron and Mobil stations. Scotto said it was the largest one-day increase he had seen since he began tracking pump prices in 1967.

“I’ve been doing this a long time and the whole thing is a shock to me,” Scotto said. “I’m very disappointed the price has changed so dramatically. I don’t think there’s enough evidence that should happen.”

Industry officials beg to differ, noting that a confluence of events have contributed to the rapid rise in prices from what were some of the lowest prices in years recently. Indeed, Los Angeles gas prices remain about 57 cents a gallon below last year’s average price.

While the nation’s crude oil inventory continues to rise, it is refining capacity in California that’s crimping supplies.

The annual change from winter fuel blends to more expensive summer blends that must be completed by mid-April for air quality reasons bears part of the blame, said spokesman Tupper Hull of the Western States Petroleum Association.

That change also prompts some of the 14 refineries in the state to schedule extensive maintenance, further reducing supplies.

Add in the fact that price volatility is accentuated here because California is geographically isolated from the rest of the nation and additional crude oil supplies must be brought in by ship rather than via pipelines, Hull said.

“When (fuel wholesalers) are concerned or anxious about supplies tomorrow they tend to bid up the cost of available supplies today,” he said. “So it’s entirely possible what we’re seeing today is a delayed reaction to events at some point in the past.

“It’s like a baker,” Hull added. “A baker needs to charge for his bread today in order to have the money necessary to buy flour tomorrow. And if he thinks the price of flour is going up tomorrow he needs to charge more for today’s bread. And that’s true in fuels, too.”

Still, pump prices have escalated at a rate that even industry professionals underestimated.

In the wake of last week’s explosion in Torrance, GasBuddy.com petroleum analyst Allison Mac predicted prices could rise by 7 to 15 cents within a week. Instead, average prices have surged more than 30 cents during that time span.

“I actually think we’re going to be paying more on St. Patrick’s Day than we are on Cinco de Mayo,” she added. “It’s really difficult for me to put a figure on it, but in the next 10 days prices are going to go up very briskly. So, basically, my advice to consumers is fill up sooner rather than later. The longer you wait it’s just going to get more expensive.”

The big price jump in the wake of the Torrance refinery explosion has caught the eye of state legislators.

On Thursday, state Senate President Kevin de Leon, D-Los Angeles, announced that in late March the Senate Energy, Utilities and Communications Committee and the Senate Transportation Committee will conduct an oversight hearing into the issue.

The goal is to improved consumer protection from oil price volatility that’s affected by market trends and supply disruptions, including refinery incidents like the one in Torrance, said de Leon’s spokesman, Anthony Reyes.

“The Senate pro tem has made oversight a priority across a wide spectrum of issues that affect all Californians,” Reyes said. “There’s nothing closer to what affects everyday life in California than the price consumers are paying at the pump, and incidents like this have to be closely watched to see how they’re affecting the actual prices consumers are paying.”

Newly elected South Bay Assemblyman David Hadley, R-Torrance, said he also hopes that issue will be aired at a joint hearing Thursday in Torrance by the state Senate Energy, Utilities and Communications Committee and the Environmental Quality Committee.

“It is incumbent upon us in the Legislature to make sure the (oil) market is transparent and above board and hopefully that’s something that will be covered at next Thursday’s meeting,” he said. “I expect it will be a wide-ranging (discussion) covering both the (refinery) safety issue and the coincident gas price surge.”

Veteran journalist Nick Green is the beat reporter for the cities of Torrance, Carson and Lomita and also covers the South Bay's rapidly growing craft beer industry for the Daily Breeze. He has worked for newspapers on the West Coast since graduating in 1987 from the University of Washington and lives in Old Torrance with his wife and two cats. Follow him on Twitter @NickGreen007 and @BeerGogglesLA.

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